JUNE 2007 AMENDMENT TO THIRD AMENDED AND RESTATED SERVICE AGREEMENT
EXHIBIT
10.59
5/15
JUNE
2007 AMENDMENT
TO
THIRD
AMENDED AND RESTATED
This
June
2007 Amendment (“Amendment”) to the Third Amended and Restated Service
Agreement
("Agreement"),
as
amended, is made as of the 1st
day of
June, 2007 (the "Effective Date of Amendment") by and between Blue Cross and
Blue Shield of Vermont ("BCBS"), with its principal place of business at 000
Xxxxxxxxxx Xxxx, Xxxxxxxxxx, Xxxxxxx 00000, and CareAdvantage, Inc. ("CAI")
with
its principal place of business at 000-X Xxxxx Xxx Xxxxx, Xxxxxx, Xxx Xxxxxx
00000.
Whereas,
the
parties have entered into the Agreement effective as of April 1, 2001;
Whereas,
the
parties have from time-to-time previously amended the Agreement;
Whereas,
the
parties desire to again amend the Agreement regarding certain performance
standards;
Now,
Therefore,
in
consideration of the mutual promises and agreements contained herein, the
parties agree as follows:
First: Commencing
the Effective Date of Amendment, Attachment 2.3 is amended in its entirety
as
attached hereto.
Second: In
all
other respects the Agreement, as amended, shall remain in full force and
effect.
In
Witness Whereof,
the
parties hereto have hereunto set their hands and seals as of the date written
above.
CAREADVANTAGE,
INC.
|
BLUE
CROSS AND BLUE SHIELD OF
VERMONT
|
||
BY:
/s/ XXXXXX X. XXXXXX
|
BY:
XXX XXXXXX
|
||
TITLE:
CEO
|
TITLE:
|
||
DATE:
6/14/2007
|
DATE:
6-4-07
|
ATTACHMENT
2.3
PERFORMANCE
STANDARDS
Goal
|
Tasks
|
Criteria
for Measuring Results
|
Deliverable
|
Penalty
for Failure to Provide Deliverable
|
||||
Submission
of annual document to the Blue Cross Blue Shield Association for
a
Distinctively Blue (DB) Award
|
Collaborate
with designated BCBSVT staff to:
Select
the topic(s) for study
Establish
the objectives
Collect/analyze
the data
Prepare
draft of annual DB submission for BCBSVT Management
review/approval
|
Key
Tasks completed
DB
Document prepared
|
Distinctively
Blue document prepared for BCBSVT management review/approval 2 weeks
prior
to submission deadline
|
$*
|
||||
Collaborate
with BCBSVT staff to develop care management program strategies through
Environmental Assessment process
|
As
standing members of Blue Health Solutions Steering Committee, CAI
on-site
staff will be responsible for leading care management component of
Environmental assessment. CAI will designate a corporate representative
to
serve on Blue Health Solutions Steering Committee CAI staff will
provide
support for the development of care management program strategies
through
participation in Blue Health Solution meetings and the environmental
assessment process
|
Submission
of Care Management component of Environmental Assessment work product,
including Slide presentation and Paper, by Plan designated target
date
|
Care
Management component of Environmental Assessment 100% criteria/categories
complete upon submission
|
$*
|
5/15
JUNE
2006 AMENDMENT
TO
THIRD
AMENDED AND RESTATED
This
June
2006 Amendment (“Amendment”) to the Third Amended and Restated Service
Agreement
("Agreement"),
as
amended, is made as of the 1st
day of
June, 2006 (the "Effective Date of Amendment") by and between Blue Cross and
Blue Shield of Vermont ("BCBS"), with its principal place of business at 000
Xxxxxxxxxx Xxxx, Xxxxxxxxxx, Xxxxxxx 00000, and CareAdvantage, Inc. ("CAI")
with
its principal place of business at 000-X Xxxxx Xxx Xxxxx, Xxxxxx, Xxx Xxxxxx
00000.
Whereas,
the
parties have entered into the Agreement effective as of April 1, 2001;
Whereas,
the
parties have from time-to-time previously amended the Agreement;
Whereas,
the
parties desire to again amend the Agreement to adjust the contract year to
coincide with a calendar year, to provide for certain performance standards
and
to extend the term;
Now,
Therefore,
in
consideration of the mutual promises and agreements contained herein, the
parties agree as follows:
First: Commencing
the Effective Date of Amendment, Section 2.1 of the Agreement is amended in
its
entirety as follows:
2.1. Generally.
As
compensation for CAI's Services to BCBS, including any direct or indirect
expenses that CAI may incur, (I) for the period commencing June 1, 2006, through
December 31, 2006, BCBS shall pay CAI a monthly fee in the amount of $*, and
(II) for the calendar year commencing January 1, 2007, BCBS shall pay CAI an
annual fee in the amount of $*.
For
each
year commencing on or after January 1, 2008 that this Agreement remains in
effect, BCBS shall pay CAI an annual fee equal to the sum of the fee for the
prior year increased by * (*%) percent.
The
monthly fee during 2006 shall be paid in arrears; the annual fee commencing
in
2007 shall be paid in equal monthly installments, in arrears.
Second: There
is
added a new Section 2.3 as follows:
2.3. Performance
Standards; Penalty and Incentive Compensation.
CAI
shall provide the Deliverables set forth in Attachment 2.3; in the event that
CAI fails to provide a Deliverable, then CAI shall pay to BCBS the penalty
specified in the aforesaid attachment. In the event that BCBS obtains
accreditation from NCQA prior to March 31, 2007, then BCBS shall pay
CareAdvantage incentive compensation in the amount of $*. Any penalty or
incentive compensation shall be paid within thirty (30) days of the date of
the
event that gives rise to the penalty or incentive compensation.
Fourth: There
is
added a new Attachment 2.3 as attached hereto.
Fifth: The
first
sentence of Section 4.1 is amended as follows:
The
term
of this Agreement shall terminate on December 31, 2008, and shall renew
automatically for successive one (1) year terms, unless either party provides
the other with notice of non-renewal not less than ninety (90) days prior to
the
end of the scheduled term.
Sixth: In
all
other respects the Agreement, as amended, shall remain in full force and
effect.
In
Witness Whereof,
the
parties hereto have hereunto set their hands and seals as of the date written
above.
CAREADVANTAGE,
INC.
|
BLUE
CROSS AND BLUE SHIELD OF VERMONT
|
||
BY:
/s/ XXXXXX X. XXXXXX
|
BY:
/s/ XXX X. XXXXXX
|
||
TITLE:
CEO
|
TITLE:
VP, MANAGED HEALTH SYSTEMS
|
||
DATE:
6/5/2006
|
DATE:
5/31/2006
|
ATTACHMENT
2.3
PERFORMANCE
STANDARDS
Goal
|
Tasks
|
Criteria
for Measuring Results
|
Deliverable
|
Penalty
for Failure to Provide Deliverable
|
||||
Develop
an ROI Measurement Tool through collaboration with BCBSVT
staff
|
CAI
will make reasonable efforts to schedule 4 meetings of BCBSVT Medical
Services Committee in 2006; CAI on-site staff will attend all ROI
meetings
and will work collaboratively with CAI corporate staff and BCBSVT
staff,
to develop and implement an ROI tool; CAI will develop and submit
proposed
ROI tool by 1/31/07
|
Documented
evidence of CAI participation in all ROI meetings with BCBSVT staff.
Documented progress towards a mutually acceptable ROI tool; Timely
submission of proposed ROI tool to BCBSVT;
|
Submission
of proposed ROI tool by 1/31/07
|
$*
|
||||
Collaborate
with BCBSVT staff to develop care management program strategies through
Environmental Assessment process
|
As
standing members of Blue Health Solutions Steering Committee, CAI
on-site
staff will be responsible for leading care management component of
Environmental assessment. CAI will designate a corporate representative
to
serve on Blue Health Solutions Steering Committee CAI staff will
provide
support for the development of care management program strategies
through
participation in Blue Health Solution meetings and the environmental
assessment process
|
Submission
of Care Management component of Environmental Assessment work product,
including Slide presentation and Paper, by Plan designated target
date
|
Care
Management component of Environmental Assessment 100% criteria/categories
complete upon submission
|
$*
|
10/12/05
OCTOBER
2005 AMENDMENT
TO
THIRD
AMENDED AND RESTATED
This
October 2005 Amendment (“Amendment”) to the Third Amended and Restated Service
Agreement
("Agreement"),
as
amended, is made as of the 1st
day of
April, 2005 (the "Effective Date") by and between Blue Cross and Blue Shield
of
Vermont ("BCBS"), with its principal place of business at 000 Xxxxxxxxxx Xxxx,
Xxxxxxxxxx, Xxxxxxx 00000, and CareAdvantage, Inc. ("CAI") with its principal
place of business at 000-X Xxxxx Xxx Xxxxx, Xxxxxx, Xxx Xxxxxx
00000.
Whereas,
the
parties have entered into the Agreement effective as of April 1, 2001;
Whereas,
the
parties have from time-to-time previously amended the Agreement;
Whereas,
the
parties desire to again amend the Agreement;
Now,
Therefore,
in
consideration of the mutual promises and agreements contained herein, the
parties agree as follows:
First: : Section
1
of Attachment A is amended in its entirety as follows:
1.
License.
In
accordance with the terms and conditions of this Attachment, CAI grants BCBS
the
non-exclusive license to use the following intellectual property only at BCBS’s
offices in the State of Vermont, and only in connection with its business of
providing health care and managed care coverage:
RightPath™
(including but not limited to RPathFinders)
Physician
Review System™
Such
properties shall collectively be referred to as “Intellectual Property”; but to
the extent such Intellectual Property consists of computer software
(i.e.,
Physician Review System™), it shall be referred to as “Software”; to the extent
that documentation accompanies the Software, it shall be referred to as
“Documentation”; updates and/or improvements to the Software and/or other
Intellectual Property shall be referred to as “Updates”; and Intellectual
Property (including Software and Updates) and Documentation and any copies
or
modifications thereto are referred to as the “Licensed Products.”
All
rights to and in the Licensed Products, including, but not limited to,
copyrights and trade secret rights, belong to CAI and CAI holds title to each
copy of the Licensed Products. BCBS shall not transfer or distribute the
Licensed Products to others, and the license granted hereunder shall
automatically terminate in the event of such a transfer or distribution. BCBS
shall not copy or modify the Licensed Products, except that (a) BCBS may copy
the Licensed Products for authorized use and for backup so long as all copyright
and other notices are reproduced and included on such copies; and (b) BCBS
may
create a system-based version of RPathFinders for authorized use.
Second:
Section
3 of Attachment A is amended in its entirety as follows
3.
Term
of License.
Upon
termination of the Third Amended and Restated Service Agreement for any reason,
BCBS shall return all copies of the Licensed Products to CAI, shall delete
all
copies of the Licensed Products from its computers, and certify such deletion
in
writing to CAI. In addition, CAI may terminate the license granted pursuant
to
this Attachment (without terminating the Third Amended and Restated Agreement)
in the event BCBS breaches any of the terms and conditions contained in this
Attachment, upon which termination BCBS shall return all copies of the Licensed
Products to CAI. All provisions of this Attachment A relating to disclaimers
of
warranties, limitation of liability, remedies, or damages, and CAI's proprietary
rights shall survive termination of the license and/or Third Amended and
Restated Agreement.
Third: In
all
other respects the Agreement, as amended, shall remain in full force and
effect.
In
Witness Whereof,
the
parties hereto have hereunto set their hands and seals as of the date written
above.
CAREADVANTAGE, INC. | BLUE CROSS AND BLUE SHIELD OF VERMONT | ||
BY:
|
BY:
/s/ XXX X. XXXXXX
|
||
TITLE:
|
TITLE:
VP, MANAGED HEALTH SYSTEMS
|
||
DATE:
|
DATE:
10-31-2005
|
||
|
2/28/05
APRIL
2005 AMENDMENT
TO
THIRD
AMENDED AND RESTATED
This
April2005 Amendment (“Amendment”) to the Third Amended and Restated Service
Agreement
("Agreement"),
as
amended, is made as of the 1st
day of
April, 2005 (the "Effective Date") by and between Blue Cross and Blue Shield
of
Vermont ("BCBS"), with its principal place of business at 000 Xxxxxxxxxx Xxxx,
Xxxxxxxxxx, Xxxxxxx 00000, and CareAdvantage, Inc. ("CAI") with its principal
place of business at 000-X Xxxxx Xxx Xxxxx, Xxxxxx, Xxx Xxxxxx
00000.
Whereas,
the
parties have entered into the Agreement effective as of April 1, 2001;
Whereas,
the
parties have from time-to-time previously amended the Agreement;
Whereas,
the
parties desire to again amend the Agreement;
Now,
Therefore,
in
consideration of the mutual promises and agreements contained herein, the
parties agree as follows:
First: Subsection
b
of
Section 1.2 is amended in its entirety to provide as follows:
x. XXX
will
provide BCBS access to a panel of fully credentialed specialists for review
of
complex cases, reconsideration and appeals. This panel will also provide support
to the Specialty Advisory Committees.
Second: The
last
sentence of Clause i
of
Subsection c
of
Section 1.4 is amended in its entirety to provide as follows
i. This
will
be supported by the matched specialty review available through the Specialty
Advisor Panel.
Third: Section
1.5 is deleted in its entirety.
Fourth: Section
2.1 of the Agreement is amended in its entirety to provide as
follows:
2.1. Generally.
As
compensation for CAI's Services to BCBS, including any direct or indirect
expenses that CAI may incur, BCBS shall pay CAI an annual fee as
follows:
April
1,
2005 to March 31, 2006 $
*
For
each
year commencing on or after April 1, 2006 that this Agreement remains in effect,
BCBS shall pay CAI an annual fee equal to the sum of the fee for the prior
year
increased by * (*%) percent. For the contract term beginning April 1, 2006
and ending March 31, 2007, in the event that BCBS obtains accreditation from
NCQA, then the preceding sentence shall be amended by substituting “* (*%)
percent” for “* (*%) percent”. The annual fee shall be paid in equal
monthly installments, in arrears.
Fifth: The
first
two paragraphs of Section 1 of Attachment A are amended in their entirety as
follows:
1.
License.
In
accordance with the terms and conditions of this Attachment, CAI grants BCBS
the
non-exclusive license to use the following intellectual property only at BCBS’s
offices in the State of Vermont, and only in connection with its business of
providing health care and managed care coverage:
RightPath™
Physician
Review System™
Such
properties shall collectively be referred to as “Intellectual Property”; but to
the extent such Intellectual Property consists of computer software
(i.e.,
Physician Review System™), it shall be referred to as “Software”; to the extent
that documentation accompanies the Software, it shall be referred to as
“Documentation”; updates and/or improvements to the Software and/or other
Intellectual Property shall be referred to as “Updates”; and Intellectual
Property (including Software and Updates) and Documentation and any copies
or
modifications thereto are referred to as the “Licensed Products.”
Sixth: In
all
other respects the Agreement, as amended, shall remain in full force and
effect.
In
Witness Whereof,
the
parties hereto have hereunto set their hands and seals as of the date written
above.
CAREADVANTAGE,
INC.
|
BLUE
CROSS AND BLUE SHIELD OF
VERMONT
|
||
BY:
/s/ XXXXXX X. XXXXXX
|
BY:
/s/ DON C.G EORGE
|
||
TITLE:
CEO
|
TITLE:
VP MANAGED HEALTH SYSTEMS
|
||
DATE:
3/21/2005
|
DATE:
3-14-2005
|
March
1,
2004
Xxx
X.
Xxxxxx
Vice
President, Managed Health Systems
Blue
Cross and Blue Shield of Vermont
000
Xxxxxxxxxx Xxxx
Xxxxxxxxxx,
Xxxxxxx 00000
Dear
Don:
As
we
discussed, this letter will amend the Service Agreement (“Agreement”) between
Blue Cross and Blue Shield of Vermont (“BCBSVT”) and CareAdvantage, Inc. (“CAI”)
dated as of April 1, 2001, as amended as of April 1, 2003, to reflect an
increase in compensation for services.
1. Section
2.1 of the Agreement is amended in its entirety to provide as
follows
2.1.
Generally.
As
compensation for CAI’s Services to BCBSVT, including any direct or indirect
expenses that CAI may incur, BCBSVT shall pay CAI an annual fee as
follows:
April
1,
2004 to March 31, 2005 $*
For
each
year commencing on or after April 1, 2005, that this Agreement remains in
effect, BCBSVT shall pay CAI an annual fee equal to the sum of (a) the fee
for
the prior year, plus (b) such additional amount as the parties may mutually
agree based on CAI’s attainment of performance measures or otherwise. The annual
fee shall be paid in equal monthly installments, in arrears.
Except
as
provided herein, the Agreement as previously amended shall remain in full force
and effect.
Assuming
that you agree with the terms set forth above, please sign and return one copy
of this letter to me.
Sincerely, | ||
|
|
|
/s/ Xxxx Xxxxxx | ||
Xxxx Xxxxxx |
||
Vice President |
Agreed:
By:
/s/
Xxx X.
Xxxxxx 3-12-2004
Xxx
X.
Xxxxxx
Vice
President, Managed Health Systems
3/18/03
AMENDMENT
TO
THIRD
AMENDED AND RESTATED
SERVICE
AGREEMENT
This
Amendment (“Amendment”) to the Third Amended and Restated Service
Agreement
("Agreement")
is
made as of the 1st
day of
April, 2003 (the "Effective Date") by and between Blue Cross and Blue Shield
of
Vermont ("BCBS"), with its principal place of business at 000 Xxxxxxxxxx Xxxx,
Xxxxxxxxxx, Xxxxxxx 00000, and CareAdvantage, Inc. ("CAI") with its principal
place of business at 000-X Xxxxx Xxx Xxxxx, Xxxxxx, Xxx Xxxxxx
00000.
Whereas,
the
parties have entered into the Agreement effective as of January 1, 2001; and
Whereas,
the
parties desire to amend the Agreement;
Now,
Therefore,
in
consideration of the mutual promises and agreements contained herein, the
parties agree as follows:
First: Section
2.1 of the Agreement is amended in its entirety to provide as
follows
2.1. Generally.
As
compensation for CAI's Services to BCBS, including any direct or indirect
expenses that CAI may incur, BCBS shall pay CAI an annual fee as
follows:
April
1,
2003 to March 31, 2004 $*
For
each
year commencing on or after April 1, 2004, that this Agreement remains in
effect, BCBS shall pay CAI an annual fee equal to the sum of (a) the fee for
the
prior year, plus (b) such additional amount as the parties may mutually agree
based on CAI’s attainment of performance measures or otherwise. The annual fee
shall be paid in equal monthly installments, in arrears.
Second: Section
6.3 of the Agreement is amended in its entirety to provide as
follows:
Nonsolicitation.
During
the term of this Agreement and for an additional period of two (2) years after
its termination, each Party agrees not to solicit, directly or indirectly,
for
employment or other relationship any employee or agent of the other Party or
its
affiliates who performed Services under this Agreement or became known to the
other Party through the relationship of the Parties without the prior written
consent of the other party.
The
parties acknowledge that damages for breach of this agreement under this Section
6.3 would be difficult to ascertain. Accordingly the parties agree that for
any
breach of this Section 6.3, Customer shall pay CAI liquidated damages in
accordance with this Section. In the event that Customer hires an employee
or
agent in violation of this Section 6.3, it shall pay CAI (a) $* in the case
of a
physician, (b) $* in the case of a nurse or other licensed professional, or
(c)
$* in the case of an employee or agent not covered by clauses (a) or (b) of
this
sentence. Furthermore, for any breach of this Section 6.3, CAI shall pay
Customer liquidated damages in accordance with this Section. In the event that
CAI hires an employee or agent in violation of this Section 6.3, it shall pay
Customer an amount equal to the then current salary of the solicited employee
plus twenty (20) percent, or in the case of an agent of Customer, an amount
equal to the outstanding contract value to be performed by such agent plus
twenty (20) percent. Provided further that in all cases the breaching party
shall reimburse the other party its reasonable attorneys’ fees incurred in
enforcing this Section 6.3.
Third: As
of the
date of the execution of this Amendment (but in no event later than as of April
1, 2003). the parties agree to add to the Agreement the HIPAA Addendum attached
hereto and made a part hereof
In
Witness Whereof,
the
parties hereto have hereunto set their hands and seals as of the date written
above.
CAREADVANTAGE, INC. | BLUE CROSS AND BLUE SHIELD OF VERMONT | ||
BY: /s/ XXXXXX X. XXXXXX | BY: /s/ XXX X. XXXXXX | ||
TITLE: CEO
|
TITLE: VP, ANAGED HEALTH SYSTEMS
|
||
DATE: 7/2/2003 | DATE: 6-27-2003 |
2
HIPAA
ADDENDUM
This
addendum (“Addendum”) is effective upon execution, and amends and is made part
of the Third Amended and Restated Service Agreement dated as of April 1, 2001
by
and between CareAdvantage, Inc. (“CAI”) and Blue Cross and Blue Shield of
Vermont (“Plan”).
A. |
Background
Statements.
|
1.
|
The
Parties acknowledge that Plan is a Covered Entity required to comply
with
the Health Insurance Portability and Accountability Act of 1996 (HIPAA)
and its implementing regulations (45 C.F.R. Parts
160-164).
|
2.
|
The
Parties agree that, pursuant to Agreement, CAI is performing certain
functions including, but not limited to, medical leadership and clinical
support, utilization review, grievance and appeals, after hours back-up
physician review coverage, and case management support on behalf
of Plan
and that when performing these functions CAI is acting as a Business
Associate of Plan.
|
3.
|
Plan
and CAI mutually agree to modify Agreement to incorporate the terms
of
this Addendum to comply with the requirements of the HIPAA and its
implementing regulations.
|
B.
|
Privacy
of Protected Health
Information.
|
1. |
Permitted
Uses and Disclosures.
CAI is permitted or required to use or disclose Protected Health
Information it creates or receives for or from Plan or to request
Protected Health Information on Plan’s behalf only as
follows:
|
a) |
Functions
and Activities on Plan’s Behalf.
Except as otherwise limited in this Addendum, CAI is permitted to
request
the minimum necessary protected health information on Plan’s behalf, and
to use and to disclose the minimum necessary Protected Health Information
to perform functions, activities, or services for or on behalf of
Plan, as
specified in Agreement.
|
b) |
CAI’s
Operations.
CAI may use the minimum necessary Protected Health Information for
CAI’s
proper management and administration or to carry out CAI’s legal
responsibilities. CAI may disclose the minimum necessary Protected
Health
Information for CAI’s proper management and administration or to carry out
CAI’s legal responsibilities only
if:
|
(i)
|
The
disclosure is required by law; or
|
(ii)
|
CAI
obtains reasonable assurance, evidenced by written contract, from
any
person or organization to which CAI will disclose Protected Health
Information that the person or organization
will:
|
a. |
Hold
such Protected Health Information in confidence and use or further
disclose it only for the purpose for which CAI disclosed it to the
person
or organization or as required by law;
and
|
b. |
Promptly
notify CAI (who will in turn promptly notify Plan) of any instance
of
which the person or organization becomes aware in which the
confidentiality of such Protected Health Information was
breached.
|
c) |
Data
Aggregation.
CAI may use Protected Health Information of Plan to provide Data
Aggregation Services to Plan.
|
Prohibition
on Unauthorized Use or Disclosure. CAI
will
neither use nor disclose Protected Health Information except as permitted or
required by this Addendum, as otherwise permitted in writing by Plan, or as
required by law. This Addendum does not authorize CAI to use or disclose
Protected Health Information in a manner that would violate the requirements
of
the Health Insurance Portability and Accountability Act of 1996 and its
implementing regulations (45 C.F.R. Parts 160-64) if done by Plan, except as
set
forth in Section B(1)(b).
Information
Safeguards.
CAI
will
develop, implement, maintain, and use appropriate administrative, technical,
and
physical safeguards, in compliance with Social Security Act § 1173(d) (42
U.S.C. § 1320d-2(d)), 45 Code of Federal Regulations § 164.530(c) and any other
implementing regulations issued by the U.S. Department of Health and Human
Services.
The
safeguards will be designed to preserve the integrity and confidentiality of,
and to prevent intentional or unintentional non-permitted or violating use
or
disclosure of, Protected Health Information. CAI will document and keep these
safeguards current.
3
Sub-Contractors
and Agents.
CAI
will
require any of its subcontractors and agents, to which CAI is permitted by
this
Addendum or in writing by Plan to disclose Protected Health Information, to
provide reasonable assurance, evidenced by written contract, that such
subcontractor or agent will comply with the same privacy and security
obligations as CAI with respect to such Protected Health
Information.
C. |
Individual
Rights.
|
1. |
Access.
CAI
will, within 15 days after Plan’s request, make available to Plan or, at
Plan’s direction, to the individual (or the individual’s personal
representative) for inspection and obtaining copies any Protected
Health
Information about the individual that is in CAI’s custody or control, so
that Plan may meet its access obligations under 45 Code of Federal
Regulations § 164.524.
|
2. |
Amendment.
CAI will, upon receipt of notice from Plan, promptly amend or permit
Plan
access to amend any portion of the Protected Health Information,
so that
Plan may meet its amendment obligations under 45 Code of Federal
Regulations § 164.526.
|
3.
|
Disclosure
Accounting.
CAI shall document disclosures of Protected Health Information and
information related to such disclosures as would be required for
Plan to
respond to a request by an individual for an accounting of disclosures
of
Protected Health Information in accordance with 45 Code of Federal
Regulations § 164.528 and shall provide such information to Plan upon
request so that Plan may meet its disclosure accounting obligations
under
45 Code of Federal Regulations §
164.528.
|
4. |
Restriction
Requests; Confidential Communications.
CAI
will comply with any agreements for confidential communications of
which
it is aware and to which Plan agrees pursuant to 45 C.F.R.
§ 164.522(b) by communicating with Members using agreed upon
alternative means or alternative
locations.
|
Inspection
of Books and Records.
CAI
will
make its internal practices, books, and records, relating to its use and
disclosure of Protected Health Information, available to Plan and to the U.S.
Department of Health and Human Services to determine compliance with 45 Code
of
Federal Regulations Parts 160-64 or this Addendum.
D. |
Breach
of Privacy Obligations.
|
1. |
Reporting.
CAI will report to Plan any use or disclosure of Protected Health
Information not permitted by this Addendum or in writing by Plan.
CAI will
make the report to Plan’s Legal Department not more than 5 days after CAI
learns of such non-permitted use or disclosure. CAI’s report will at
least:
|
a)
|
Identify
the nature of the non-permitted use or
disclosure;
|
b)
|
Identify
the Protected Health Information used or
disclosed;
|
c)
|
Identify
who made the non-permitted use or disclosure and who received the
non-permitted or violating
disclosure;
|
d)
|
Identify
what corrective
action CAI took or will take to prevent further non-permitted uses
or
disclosures;
|
e)
|
Identify
what CAI did or will do to mitigate any deleterious effect of the
non-permitted use or disclosure;
and
|
f)
|
Provide
such other information, including a written report, as Plan may reasonably
request.
|
2. |
Termination
of Agreement.
|
a)
Right
to Terminate for Breach.
Plan
may terminate Agreement if it determines, in its reasonable discretion, that
CAI
has materially breached any provision of this Addendum
and, on
notice of such material breach or violation from Plan, CAI fails to take
reasonable steps to cure the breach or end the violation. If CAI fails to cure
the material breach or end the violation within 30 days after receipt of Plan’s
notice, Plan may terminate Agreement by providing CAI written notice of
termination, stating the uncured material breach or violation that provides
the
basis for the termination and specifying the effective date of the termination.
4
b) |
Obligations
upon Termination.
|
(i) |
Return
or Destruction.
Upon termination, cancellation, expiration or other conclusion of
Agreement, CAI will if feasible return to Plan or destroy all Protected
Health Information, including all Protected Health Information in
whatever
form or medium (including any electronic medium) and all copies of
and any
data or compilations derived from and allowing identification of
any
individual who is a subject of Protected Health Information. CAI
will
complete such return or destruction as promptly as possible, but
not later
than 60 days after the effective date of the termination, cancellation,
expiration or other conclusion of Agreement. CAI will identify any
Protected Health Information that cannot feasibly be returned to
Plan or
destroyed. CAI will limit its further use or disclosure of that Protected
Health Information to those purposes that make return or destruction
of
that Protected Health Information infeasible. Within 60 days after
the
effective date of the termination, cancellation, expiration or other
conclusion of Agreement, CAI will (a) certify on oath in writing
to Plan
that such return or destruction has been completed, (b) deliver to
Plan
the identification of any Protected Health Information for which
return or
destruction is infeasible, and (c) certify that it will only use
or
disclose such Protected Health Information for those purposes that
make
return or destruction infeasible.
|
(ii) |
Continuing
Privacy Obligation.
CAI’s obligation to protect the privacy of the Protected Health
Information it created or received for or from Plan will be continuous
and
survive termination, cancellation, expiration or other conclusion
of
Agreement.
|
(iii) |
Other
Obligations and Rights.
CAI’s other obligations and rights and Plan’s obligations and rights upon
termination, cancellation, expiration or other conclusion of Agreement
will be those set out in Agreement.
|
E.
|
Conflicts.
The terms and conditions of this Addendum will override and control
any
conflicting term or condition of Agreement. All nonconflicting terms
and
conditions of Agreement remain in full force and
effect.
|
F. |
General
Provisions.
|
1. |
Definitions.
The
capitalized terms “Health Care Operations,” “Payment,”
“Protected Health Information,” and “Treatment” shall have the same
meaning as in 45 C.F.R. § 164.501. The capitalized terms “Business
Associate” and “Covered Entity” shall have the same meaning as in 45
C.F.R. § 160.102.
|
2. |
Amendment
to Agreement.
Upon
the effective date of any final regulation or amendment to final
regulations promulgated by the U.S. Department of Health and Human
Services with respect to Protected Health Information or Standard
Transactions, this Addendum and the Agreement of which it is part
will
automatically amend such that the obligations they impose on CAI
remain in
compliance with these regulations.
|
5
5/29/01
THIRD
AMENDED AND RESTATED
SERVICE
AGREEMENT
This
Third Amended and Restated Service Agreement
("Agreement") is made as of the 1st
day of
April, 2001 (the "Effective Date") by and between Blue Cross and Blue Shield
of
Vermont ("BCBS"), with its principal place of business at 000 Xxxxxxxxxx Xxxx,
Xxxxxxxxxx, Xxxxxxx 00000, and CareAdvantage, Inc. ("CAI") with its principal
place of business at 000-X Xxxxx Xxx Xxxxx, Xxxxxx, Xxx Xxxxxx
00000.
Whereas,
CAI,
which is engaged in the business of providing care management services, has
been
providing services to BCBS, which provides health insurance coverage and managed
care coverage, pursuant to a Second Amended and Restated Services Agreement
dated as of May 24, 2000 ("Prior Agreement");
Whereas,
the
parties desire to amend and restate the Prior Agreement;
Now,
Therefore,
in
consideration of the mutual promises and agreements contained herein, the
parties agree as follows:
1. Services.
1.1 Generally. As
set
forth herein, CAI will provide a medical management team (a) to plan and
implement care management programs for the enhancement of the current care
management of inpatient and outpatient facility-based services, professional
services and supplies, (b) to reduce the cost and utilization of patient
services, and (c) to meet BCBS’s cost containment goals. Specifically, CAI will
provide to BCBS the medical leadership and clinical support described in Section
1.2; in accordance with its terms, the use of the intellectual property
described in Section 1.3; and the services described in Sections 1.4, 1.5 and
1.6 (collectively "Services") in connection with all BCBS members enrolled
in
the Care Management Program (which includes BCBS members enrolled in PPO and
POS
products (including cost plus), national accounts and FEP; and does not include
BCBS members enrolled in TVHP Medicare Supp.) CAI will provide the Services
with
respect to all medical and surgical services other than mental health, substance
abuse and prescription drugs.
1.2 Medical
Leadership and Clinical Support
CAI
shall provide a Corporate Medical Director, access to CAI Specialty Advisory
Panel, and 24/7 back-up physician review coverage, all in accordance with this
Agreement.
a. Corporate
Medical Director.
CAI
will provide BCBS with an on-site Corporate Medical Director whose
responsibilities shall include:
i. | Assisting BCBS achieve its corporate and program objectives; |
ii.
|
Representing
BCBS and its care management initiatives to providers, members and
purchasers;
|
iii.
|
Supporting
clinical reviews in the care management
program;
|
iv.
|
Developing
corporate medical and payment
policies;
|
v.
|
Providing
leadership to and management of BCBS’s Medical Services
Department;
|
vi.
|
Supporting
and participating in provider contracting
initiatives;
|
vii.
|
Serving
as chairman of BCBS’s Care Management Steering
Com-mittee;
|
viii.
|
Supporting
and facilitating development of new care management programs;
and
|
ix.
|
Assisting
BCBS in complying with NCQA/Rule 10
requirements.
|
The
Corporate Medical Director, who shall serve under the direction of BCBS’s Vice
President for Managed Health Systems (or such other officer as BCBS shall
designate), shall be a CAI employee and shall devote his full-time efforts
to
CAI's responsibilities under this Agreement.
b. Specialty
Advisor Panel.
CAI
will provide BCBS access to CAI's panel of fully credentialed specialists for
review of complex cases, reconsideration and appeals. This panel will also
provide support to the Specialty Advisory Committees.
c. Back-Up
Physician Review Coverage.
For
those times that the Corporate Medical Director and/or the BCBSVT medical
directors are unavailable, CAI will provide after-hours back-up physician review
coverage seven days per week via telephone.
1.3 Intellectual
Property.
During
the term of this Agreement, CAI will provide BCBS with the use of the
intellectual property described in Attachment A in accordance with the terms
of
that Attachment.
1.4 Performance
Enhancement and Support.
a. CAI
will
provide BCBS with an on-site Director of Operations whose responsibilities
will
include:
i. As
necessary, reviewing BCBS’s utilization and management operation and the related
corporate infrastructure. Such review will address those functions that affect
results, productivity and quality, and may include program focus and scope;
review criteria; clinical review staff; physician review support; clinical
staff
training; timeliness of notification and review; on-site review; denials,
penalties and appeals; case management programs; disease management programs;
and systems support.
ii. Periodic
audits of completed cases, assessing inter-reviewer reliability in compliance
with the requirements of external accreditation agencies.
b. Strategy
Development and Implementation.
CAI will
provide support to BCBS strategic initiatives by providing the
following:
i.
CAI
leadership in preparing BCBS for URAC accreditation for case
management;
ii. CAI
Executive leadership participation in BCBS Care Management Committee;
and
iii. CAI
National Medical Director involvement in BCBS committees and strategic
planning.
c. Provider
Network Management.
i. CAI,
through the case review process and through the formation of Specialty Advisory
Committees, will seek to engage network physicians and hospitals in addressing
care management issues. In the case review process, the Medical Directors will
contact attending physicians or the hospital UR staff to discuss treatment
plans
or alternatives. This will be supported by the matched specialty review
available through the CAI Specialty Advisor Panel.
ii. CAI
will
recommend and support the formation and coordination of select Specialty
Advisory Committees to address care management issues. These committees are
a
means to develop program guidelines that reflect regional medical practice
and
to develop working relationships with the provider community.
iii. CAI
will
work with BCBS’s contracting personnel to assist in managing the at-risk
networks, providing them with analysis and care management program support,
as
indicated.
d. Outcomes
Measurement.
CAI
will conduct quarterly analyses of program outcomes using BCBS claims data
and
program activity data, and will issue management reports customized as
reasonably requested by BCBS.
1.5 Care
Management Business Systems.
CAI
will provide and maintain the following business systems in support of the
BCBS
care management program:
a.
|
Physician
Review System™
(PRS), a software system to record and report physician review
activity;
|
b.
|
Case
Management Screening Module (CMS), software system that identifies
candidates for case management;
and.
|
c.
|
ClientNet™,
an internet-based system that provides on-line access to aggregated
claims
data.
|
1.6 Additional
Services.
CAI
shall provide such additional services and/or additional medical directors
as
the parties may agree.
1.7 BCBS
Right of Approval.
The
Corporate Medical Director and his replacement shall in all respects be
satisfactory to BCBS in its reasonable judgment, including in medical education,
training, experience, judgment, and ability to work with and relate to BCBS
employees, physicians under contract with BCBS, and others in the medical
community. CAI has proposed Xxxxxxx Xxxxxxx, M.D. to be the Corporate Medical
Director pursuant to this Agreement, and BCBS has determined that Xxxxxxx is
acceptable to it to serve in that capacity.
2. Compensation
& Expenses
2.1. Generally.
As
compensation for CAI's Services to BCBS, including any direct or indirect
expenses that CAI may incur, BCBS shall pay CAI an annual fee as
follows:
April
1, 2001 to March 31,
2002 $*
For
each
year commencing on or after April 1, 2002, that this Agreement remains in
effect, BCBS shall pay CAI an annual fee equal to the sum of (a) the fee for
the
prior year, plus (b) such additional amount as the parties may mutually agree
based on CAI’s attainment of performance measures or otherwise. The annual fee
shall be paid in equal monthly installments, in arrears.
2.2. Compensation
for Additional Services.
In the
event the parties agree that CAI shall perform additional services and/or
provide additional medical directors, then as part of such agreement the parties
shall also agree to appropriately increase CAI’s compensation otherwise payable
pursuant to Section 2.1.
3. Confidentiality
3.1 Generally. Each
party hereto hereby agrees that, during the term of this Agreement and after
its
termination, it shall (a) not, directly or indirectly, use (other than for
the
purposes contemplated hereby during the term), (b) keep secret and retain in
strictest confidence, and (c) not disclose to any third party, Confidential
Information as defined herein. Notwithstanding the foregoing, a party may
disclose Confidential Information: (i) when compelled to do so by applicable
law, and (ii) to those of such party's officers, directors, partners, employees
and agents who have a "need to know."
3.2 Definition. "Confidential
Information" shall mean (a) any forms, policies, procedures, manuals and
materials of any kind created, owned or provided by a party in connection with,
or with respect to, the Services, (b) any information or data relating to the
Services or this Agreement that is made available by a party to the other party
and (i) is marked confidential, or at the time of its being made available,
is
otherwise indicated to be confidential, or (ii) within thirty (30) days after
such information or data is first made available, is indicated in writing to
be
confidential, (c) any derivative works based on the materials, information
or
data described in subclauses (a) and (b) above, and (d) with respect to the
confidentiality obligations hereunder of CAI only, (i) patient information,
and
(ii) any and all information or data (whether patient specific, account
specific, aggregates thereof or otherwise) relating to the cost or utilization
of health care services provided to, or received by an individual covered by
any
BCBS health care benefit plan; provided,
however,
Confidential Information shall not mean information or data that (A) was
previously known to the receiving party at the time of disclosure, (B) is
publicly known through no act or omission by the receiving party, or (C) is
disclosed to the receiving party by a third party having the legal right to
make
such disclosure.
4. Term.
4.1 Generally. This
Agreement shall be for a three (3) year term beginning on the Effective Date,
and shall renew automatically for successive one (1) year terms, unless either
party provides the other with notice of non-renewal not less than ninety (90)
days prior to the end of the scheduled term. Without limiting the foregoing,
a
non-renewal notice may include proposed new terms and conditions for the
extension of this Agreement. In the event new terms and conditions for the
continuation of this Agreement are proposed by either party, the parties agree
to negotiate in good faith concerning the proposed new terms (including the
right to reject the proposed new terms and not extend this Agreement) in an
attempt to agree on new terms and conditions prior to the scheduled expiration
date.
5. Insurance;
Indemnification; Defense of Litigation
5.1 Insurance. CAI
shall maintain in full force and effect during the term of this Agreement errors
and omissions/utilization review and utilization management insurance in per
occurrence and aggregate face amounts of at least $* million and $* million
respectively, such policy or policies not to be cancelable upon less than thirty
(30) days' prior notice, and providing that BCBS shall receive copies of any
notice of cancellation.
5.2 Indemnification. Each
party hereto (as such, an "Indemnifying Party") agrees to indemnify, defend
and
hold harmless (collectively, "Indemnify") the other party and such other party's
officers, directors, employees or agents (collectively, "Indemnified Parties")
from and against any and all claims, suits, costs and expenses, including
without limitation, costs of investigation and defense, incurred by such
Indemnified Parties as a result of any willful misconduct or any negligent
act
or omission by the Indemnifying Party in connection with this Agreement. This
provision is not intended to obligate CAI to Indemnify BCBS for claims under
the
terms of BCBS’s health insurance policies or HMO agreements which BCBS would
have been obligated to pay regardless of the misconduct or act or omission
of
CAI.
5.3 Defense
of Litigation. Except
as
provided in Section 5.2, each party shall be responsible at its own expense
for
defending itself in any litigation brought against it, whether or not the other
party is also a defendant, arising out of any aspect of activities undertaken
in
connection with this Agreement. Each party agrees to provide the other party
information in its possession which is necessary to the other party's defense
in
such litigation.
6. Additional
Requirements
6.1 Independent
Contractors.
The
relationship of the parties under this Agreement shall be that of independent
contractors. Neither shall have any claim under this Agreement or otherwise
against the other party as a joint venturer or partner.
6.2 Proprietary
Rights.
Neither
party shall use the name, logos, trademarks, or service marks of the other
without the other's prior written consent, except that CAI may include BCBS
in
its listing of clients.
6.3 Nonsolicitation
of Employees.
During
the term of this Agreement and for an additional period of two (2) years after
the termination of this Agreement, neither CAI nor BCBS shall solicit for
employment or hire any employee or consultant of the other without the other's
prior written consent.
6.4 Non-Competition.
CAI
agrees that during the period commencing on the date of this Agreement to and
including the second anniversary of the date this Agreement terminates (for
whatever reason), CAI shall not (a) engage directly or indirectly in the State
of Vermont in any business that is in direct or indirect competition with the
business of BCBS, or (b) contract to provide its services in the State of
Vermont to an entity that is in direct or indirect competition with the business
of BCBS.
6.5 No
Guarantee of Medical Results.
Neither
the execution of this Agreement nor the performance of any of its obligations
constitutes an undertaking by CAI to guarantee the results of health care
provider services or that such services will be rendered in accordance with
generally accepted medical standards or procedures. The parties agree that
CAI
is not and shall not be deemed a health care provider as a result of the
Services provided pursuant to this Agreement, and that all decisions concerning
the rendering of health care services are determined by the patient's physician,
hospital or other health care provider and the patient.
7. Miscellaneous
7.1 Compliance
With Laws.
Each
party shall, throughout the term of this Agreement, use its best efforts to
be
in continuous compliance with all applicable laws.
7.2 Notice.
All
notices and other communications hereunder shall be in writing and shall be
deemed to have been given upon receipt, and shall be addressed as
follows:
If
to BCBS:
|
Blue Cross and Blue Shield of Vermont | |
000
Xxxxxxxxxx Xxxx,
Xxxxxxxxxx,
Xxxxxxx 00000
Attn:
Xxx
Xxxxxx,
Vice President
|
||
If
to CAI:
|
CareAdvantage, Inc. | |
000-X
Xxxxx 0 Xxxxx
Xxxxxx,
Xxx Xxxxxx 00000
Attn:
Xxxxxx
Xxxxxx,
Chief Executive Officer &
President
|
or
to
such other address as any party hereto shall have designated to the other
parties in accordance with the provisions of this Agreement.
7.3 Parties
in Interest.
This
Agreement is made for the exclusive benefit of the parties hereto, their
successors and permitted assigns, and no person or entity other than CAI, BCBS,
their successors or permitted assigns shall acquire or have any rights under
or
by virtue of this Agreement.
7.4 Impossibility
of Performance.
No party
shall be deemed to be in violation of this Agreement if prevented from
performing any obligation hereunder due to matters that are beyond its control,
including without limitation war, fire, strikes, riots, floods, storms,
earthquakes, other elements or acts of God or the public enemy.
7.5 Binding
Agreement; Assignability.
This
Agreement shall be binding upon and shall inure to the benefit of the parties
hereto and their respective successors and permitted assigns and subcontractors.
No party hereto shall sell, assign, transfer, convey, subcontract or otherwise
dispose of its rights or obligations under, title to, or interest in, this
Agreement, in whole or in part, to a third party other than a parent,
subsidiary, or affiliate without the prior written consent of the other party,
which consent shall not be unreasonably withheld.
7.6 Entire
Agreement; Amendment.
This
Agreement embodies the entire agreement and understanding between the parties
hereto with respect to the subject matter hereof. This Agreement may not be
amended except by a writing executed by each of the parties hereto.
7.7 Disputes.
In the
event of any dispute between the parties hereto arising out of or concerning
this Agreement, the parties agree to use their reasonable best efforts to
resolve any such dispute amicably, in good faith, and expeditiously prior to
resorting to litigation.
7.8 Injunctive
Relief.
The
parties acknowledge that in the event of the breach of certain provisions of
this Agreement, including Sections 3, 6.2 and 6.3 or 6.4, CAI or BCBS, as the
case may be, may not have an adequate remedy at law and will suffer irreparable
damage and injury. Therefore, in addition to any other remedy available, CAI
and
BCBS each agree that if it violates any of the provisions of Section 3, 6.2,
6.3
or 6.4, the non-breaching party shall be entitled to injunctive relief, without
bond, from a court of competent jurisdiction.
7.9 Governing
Law.
This
Agreement shall be construed in accordance with and governed by the laws of
the
State of New Jersey without giving effect to the principles of conflicts of
laws.
7.10 Effect
of Prior Agreement.
Commencing as of the Effective Date, the rights and obligations of the parties
shall be determined pursuant to this Agreement and the Prior Agreement shall
be
of no further effect.
7.11 Severability.
If any
provision of this Agreement or application thereof shall be invalid or
unenforceable, the remainder of this Agreement shall remain in full force and
effect.
7.12 Counterparts.
This
Agreement may be executed in several counterparts, each of which is an original
but all of which shall constitute one and the same instrument.
In
Witness Whereof,
the
parties hereto have hereunto set their hands and seals as of the date written
above.
CAREADVANTAGE, INC. | BLUE CROSS AND BLUE SHIELD OF VERMONT | |||
BY: /s/ XXXXXX X. XXXXXX | BY: /s/ XXX X. XXXXXX | 7-12-2001 | ||
TITLE: CEO
|
TITLE:
VICE PRESIDENT MANAGED HEALTH SYSTEMS
|
ATTACHMENT
A
INTELLECTUAL
PROPERTY
1.
License.
In
accordance with the terms and conditions of this Attachment, CAI grants BCBS
the
non-exclusive license to use the following intellectual property only at BCBS’s
offices in the State of Vermont, and only in connection with its business of
providing health care and managed care coverage:
RightPath™
Physician
Review System™
ClientNet™
Case
Management Screening
Such
properties shall collectively be referred to as “Intellectual Property”; but to
the extent such Intellectual Property consists of computer software
(i.e.,
Physician Review System™ and ClientNet™), it shall be referred to as “Software”;
to the extent that documentation accompanies the Software, it shall be referred
to as “Documentation”; updates and/or improvements to the Software and/or other
Intellectual Property shall be referred to as “Updates”; and Intellectual
Property (including Software and Updates) and Documentation and any copies
or
modifications thereto are referred to as the “Licensed Products.”
All
rights to and in the Licensed Products, including, but not limited to,
copyrights and trade secret rights, belong to CAI and CAI holds title to each
copy of the Licensed Products. BCBS shall not transfer or distribute the
Licensed Products to others, and the license granted hereunder shall
automatically terminate in the event of such a transfer or distribution. BCBS
shall not copy or modify the Licensed Products, except that BCBS may copy the
Licensed Products for authorized use and for backup so long as all copyright
and
other notices are reproduced and included on such copies.
2. Updates.
During
the term of the Second Amended and Restated Agreement, CAI will provide BCBS
without additional charge copies of all Updates to the extent that they become
available for commercial use.
3.
Term
of License.
Upon
termination of the Second Amended and Restated Agreement for any reason, BCBS
shall return all copies of the Licensed Products to CAI. In addition, CAI may
terminate the license granted pursuant to this Attachment (without terminating
the Second Amended and Restated Agreement) in the event BCBS breaches any of
the
terms and conditions contained in this Attachment, upon which termination BCBS
shall return all copies of the Licensed Products to CAI. All provisions of
this
Attachment A relating to disclaimers of warranties, limitation of liability,
remedies, or damages, and CAI's proprietary rights shall survive termination
of
the license and/or Second Amended and Restated Agreement.
4.
Object
Code.
The
Software is delivered in object code only. BCBS shall not reverse compile or
otherwise reverse engineer the Software.
5.
Limited
Warranty.
CAI
does not warrant that the functions contained in the Licensed Products will
meet
BCBS's requirements or that the operation of the Software will be uninterrupted
or error-free. CAI does warrant that the media on which the Software is
furnished will be free from defects in materials and workmanship under normal
use for a period of thirty (30) days from the date of delivery ("Warranty
Period"). BCBS's exclusive remedy under this limited warranty is the replacement
of any defective physical media on which the Software is furnished, as provided
below. To receive a replacement for defective media under this limited warranty,
return the defective media to CAI during the Warranty Period.
EXCEPT
AS
PROVIDED ABOVE, THE LICENSED PRODUCTS IS PROVIDED "AS IS" WITHOUT WARRANTY
OF
ANY KIND, EITHER EXPRESSED OR IMPLIED, INCLUDING, BUT NOT LIMITED TO, THE
IMPLIED WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE,
AND
THE ENTIRE RISK AS TO THE QUALITY AND PERFORMANCE OF THE LICENSED PRODUCTS
IS
WITH BCBS.
6.
Limitation
of Liability.
CAI'S
SOLE OBLIGATION OR LIABILITY UNDER THIS AGREEMENT IS THE REPLACEMENT OF
DEFECTIVE MEDIA ACCORDING TO THE LIMITED WARRANTY ABOVE. IN ANY STATE WHERE
THE
FOREGOING LIMITATION OF LIABILITY IS UNENFORCEABLE, CAI’S SOLE OBLIGATION OR
LIABILITY UNDER THIS AGREEMENT SHALL BE PAYMENT OF $100. IN NO EVENT WILL CAI
BE
LIABLE FOR ANY CONSEQUENTIAL, INCIDENTAL OR INDIRECT DAMAGES, INCLUDING, WITHOUT
LIMITATION, ANY LOSS OF DATA, OR LOSS OF PROFITS OR LOST SAVINGS, ARISING OUT
OF
USE OF OR INABILITY TO USE THE SOFTWARE OR DOCUMENTATION, EVEN IF CAI HAS BEEN
ADVISED OF THE POSSIBILITY OF SUCH DAMAGES, OR FOR ANY CLAIM BY ANY THIRD PARTY.
IN NO EVENT SHALL CAI BE LIABLE FOR ANY DAMAGES.
7. General.
Any
attempt by BCBS to sublicense, assign or transfer any of the rights, duties
or
obligations with respect to the Intellectual Property is void.